Which umbrella company after April changes?

[farazfastian]

Hi all,

I'm new to contracting and dont know Umbrella companies history, after April changes can you guide me which umbrella company should i join? Like i'm considering following

Giant, Parasol, ContractUmbrella

The best net income quotation i've got so far is 65% is it norm or i can get more with umbrella option? (provide normal expensis) as i heard with umbrella company you can earn upto 75% is it correct?

Regards
Faraz

[cojak]

Read the stickies.

65% is the norm for Umbrellas, 75% is in the region for Ltds.

In the end the choice is yours and yours alone.

[lilfreckles]

You can get uo to 75% with tax relief given by the expenses you claim. The more expenses you claim the more tax relief you will receive. Umbrella is very safe at present

[LisaContractorUmbrella]

You can get uo to 75% with tax relief given by the expenses you claim. The more expenses you claim the more tax relief you will receive. Umbrella is very safe at present

Although this is essentially true it is more than a little misleading and a huge misconception about umbrella companies. Your take home pay will be the same whichever umbrella company you use assuming that the expenses you claim are legitimate; the only difference will be the fees that you pay to the umbrella company. You cannot claim different expenses through different umbrella companies and you cannot claim for expenses that you have not incurred. An umbrella company's dispensation may cover e.g. overnight accomodation to £95 - this does not mean that you can claim £95 if you have only spent £50. You must also be able to present receipts for your expense claims - do not believe any umbrella company that tells you you do not need receipts!

If you have any doubts at all about the information you are given by an umbrella company contact the Inland Revenue direct.

HTH

[SoupDragon]

I went through this process of looking at umbrellas...

then decided to go with a Ltd company. Choose the right accountant and they do practically everything for you and make it abundantly clear what you have to do.

[Money Money Money]

Although this is essentially true it is more than a little misleading and a huge misconception about umbrella companies. Your take home pay will be the same whichever umbrella company you use assuming that the expenses you claim are legitimate; the only difference will be the fees that you pay to the umbrella company. You cannot claim different expenses through different umbrella companies and you cannot claim for expenses that you have not incurred. An umbrella company's dispensation may cover e.g. overnight accomodation to £95 - this does not mean that you can claim £95 if you have only spent £50. You must also be able to present receipts for your expense claims - do not believe any umbrella company that tells you you do not need receipts!

If you have any doubts at all about the information you are given by an umbrella company contact the Inland Revenue direct.

HTH

I don't think this is completely true?!?!?

If one Umbrella Company has a dispensation for over night stays of £70 and another Umbrella Company has one for £100. Then surely if you are spending £100 a night, then you will be better with the Umbrella Company with the higher dispensation? No?

So if you are genuinely spending higher amounts ( and I'm sure at some point in most contracts this may be the case ) a higher dispensation will benefit the contractor?

If you take in to account your:

Food
Mileage
Hotels
Subsistence

I think it does make a difference.

Thoughts?

[malvolio]

Thoughts? Rather more than you it seems. Expenses are intended to be revenue neutral. If you don't spend it you don't claim it. If you ignore that rule, you are breaking several laws, not least of which is tax evasion. So grow up and learn the rules.

The only time you might make money is on mileage and even then the numbers used - 40p and 25p - are fairly close to the actual cost of running a new to three year old car. It's not as much profit as you might think unless you're in something older.

[Money Money Money]

Thoughts? Rather more than you it seems. Expenses are intended to be revenue neutral. If you don't spend it you don't claim it. If you ignore that rule, you are breaking several laws, not least of which is tax evasion. So grow up and learn the rules.

The only time you might make money is on mileage and even then the numbers used - 40p and 25p - are fairly close to the actual cost of running a new to three year old car. It's not as much profit as you might think unless you're in something older.

I'm not talking about making profit!!!

I'm saying if you ACTUALLY spent £100 in a hotel (which, in the city centre isn't hard!) and you can only offset £70, your going to be worse off than if you could offset £100.

How's that tax evasion?

[ASB]

I'm not talking about making profit!!!

I'm saying if you ACTUALLY spent £100 in a hotel (which, in the city centre isn't hard!) and you can only offset £70, your going to be worse off than if you could offset £100.

How's that tax evasion?

I understand what you are saying but it still make no difference. [Although the one with the higher dispensation may be slightly easier].

The dispensation is not a cap on what is claimable. It is a cap on what is claimable without checking by the brolly. So in the case of the £70 dispensation and your claim for £100 the brolly DOES need to see the receipt.

[Money Money Money]

I understand what you are saying but it still make no difference. [Although the one with the higher dispensation may be slightly easier].

The dispensation is not a cap on what is claimable. It is a cap on what is claimable without checking by the brolly. So in the case of the £70 dispensation and your claim for £100 the brolly DOES need to see the receipt.

So if you spend more than what is stated on the dispensation, you just need to provide the receipt to offset it?
Is that right Lisa? I thought you previously said that you needed receipts?